Mon, 07 Jan 2013 | ADMINISTRATION
Reader's Digest has started to implement insolvency plans as part of its CVA for the direct marketing division.
The company was pushed to make three quarters of its UK direct marketing staff redundant last week after Jon Moulton's Better Capital private equity firm cut its support.
Better Capital rescued the magazine from administration less than three years ago, with promises to "return the business to its heyday."
However, cracks soon became apparent and Better has said that it has injected significant funds into the business "without adequate returns", prompting a reassessment of its assets.
A statement from the firm read: "Very substantial early cost-cutting enabled an improvement in profitability.
"However, a faster than expected decline in the business's direct marketing sales of CDs, DVDs and books has continued to make trading difficult. No easy route to long-term viability for the direct marketing business exists."
Reader's Digest had around two million readers in its 1990s heyday, but its circulation has fallen to less than 400,000 recently and many copies are even given away free of charge.
The company provides a variety of assessments and support packages to parents; these include formal observations, self management work, life skill lessons and access to external specialist services.
Established for over 20 years with a turnover of £3.7m, this company boasts a loyal client base and experienced team, making it an excellent opportunity for integration or market entry.
Established hotel with sustainable practices and renewable energy focus, located on a circa 1.5 acre site in the local region.
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